For small businesses, funding is essential for expansion. But, securing access to capital is often a stressful and challenging task. To help you, here are five helpful tips for writing a successful funding proposal to boost your chances of securing capital:

1. Complete Your Business Plan

Before anything else, you should concentrate on your business plan. Remember the five P’s: “Prior Preparation Prevents Poor Performance.” 

Before seeking out funding agencies, you will need to be able to explain:

• How much your project costs
• How much money you are asking for
• Your financial forecasts for at least three years
• An industry/market analysis
• An operations plan

These basic components of your business plan not only force you to think of every contingency but also show funders that you are reliable. For more tips, check out our article, 10 Tips for What a Lender Looks for in a Business Plan.

2. Read and Follow Instructions

Many business owners tend to use generic templates for business plans or projects instead of taking the time to understand what specific funders are looking for. By familiarizing yourself with the format and content the funder is seeking, you can better understand which types of businesses and projects they hope to fund.

For example, if a funder specifies that they won’t fund more than 25 percent of a project, but you try to leverage 50 percent, your proposal will get rejected no matter how fantastic it is.

3. Ask Yourself: What’s in it for Them?

Funders want to find a reason to give you money, but they each have specific motivations for doling it out. Earning a return on investment doesn’t necessarily mean a funder wants to earn a specific amount of interest, but they’ll want assurance that their money will be spent to achieve certain goals. 

Whether it be job creation, protecting the environment, or improving people’s health, make sure to explain how your business or project will help a funder attain their goals.

4. Research Your Competition

Who else has been funded by the agency you’re applying to? Look into what other sorts of businesses and projects they’ve funded in the past, as it may give you a clue to the values of your desired funder.

Even though your sales pitch must fit within the funder’s criteria just like everyone else, you also need to make sure you can articulate your unique selling proposition. Don’t be shy, if you believe your business or project is the best, make sure the funder understands why. Take a look at our Market Research for Small Businesses page for more tips and resources.

5. Be Clear and Concise

Here are some ways to ensure your proposal is clear and concise:

• Use lists or bullet points where appropriate
• Avoid fluff
• Make every word count
• Address who, what, when, where, why, and how
• Read the application out loud to make sure it flows properly
• Try to use language similar to that found in the funding application
• Don’t be afraid to have your proposal reviewed by a friend or colleague
• Use spell check before you submit it

For tips on writing a grant proposal in particular, read How To Write a Grant Proposal in 9 Steps.

Small Business BC is Here to Help

SBBC is a non-profit resource centre for BC-based small businesses. Whatever your idea of success is, we’re here to provide holistic support and resources at every step of the journey. Check out our range of business webinars, on-demand E-Learning Education, our Talk to an Expert Advisories, or browse our business articles.